Salesforce Slashes Slack Prices by 90% for U.S. Federal Government

– Salesforce offers a 90% discount on Slack to U.S. federal agencies.
– The discount aligns with the OneGov initiative to centralize tech procurement.
– Other tech giants like Google, Adobe, and ServiceNow are also offering significant discounts.

In a bold move, Salesforce Inc. has slashed Slack prices by a whopping 90% for U.S. federal agencies, signaling a significant shift in government technology procurement. This offer aligns with the federal government’s OneGov initiative, aimed at centralizing technology procurement and ensuring taxpayer savings. Imagine federal workers across the country suddenly finding their communication tools dramatically cheaper. That’s the reality thanks to Salesforce’s bold move with Slack.

The General Services Administration (GSA) announced this landmark deal on Monday, marking a move towards bigger, more effective deals. Josh Gruenbaum, Commissioner of the Federal Acquisition Service, highlighted this shift, stating,

“We’re on a journey toward smarter buying. Instead of managing hundreds of small contracts, the government is now focusing on larger, high-impact deals that will benefit everyone.”

The discount extends to Slack Enterprise Grid, a version designed for large organizations with enhanced security features, as well as nearly 70% off on Slack AI for Enterprise per user, which includes AI-powered tools to improve productivity. This initiative isn’t just about slashing prices; it’s a broader effort to streamline government operations and enhance efficiency.

The OneGov initiative has already saved $100 million in the past year by consolidating contracts and has the potential to save billions, with other tech giants like Google, Adobe, and ServiceNow joining the fray. Google, for instance, is offering a 71% discount on its Workspace productivity suite, while Adobe and ServiceNow are also extending significant discounts to federal agencies.

Behind this cost-cutting drive is the newly formed Department of Government Efficiency (DOGE), led by a seasoned government official with a background in technology management. DOGE’s mission is clear: cut federal spending and streamline the government’s use of technology. Recent audits by DOGE have uncovered overpayments for unused software licenses, prompting a Senate bill to overhaul software purchasing for more competitiveness and transparency.

The GSA is not only reducing the number of intermediaries in software procurement to cut costs but also reevaluating software stacks, potentially dropping longtime suppliers. Dave Rey, Salesforce’s head of public sector business, emphasized the initiative’s broader goal, stating,

“This initiative isn’t just about providing cheaper software. It’s about helping the government serve the American people more effectively.”

While the discounts and centralization efforts are commendable, critics caution that the relationship between tech companies and government agencies requires careful monitoring to ensure fairness and transparency. The involvement of major tech players signals a shift in how the federal government approaches software and digital collaboration, with an eye on efficiency and cost-effectiveness.

However, there’s a darker side to consider. The Department of Government Efficiency (DOGE) has been granted access to federal systems, raising significant security concerns. A GAO audit and congressional inquiries suggest potential misuse of agency data and systems, highlighting the need for vigilance. Representatives Bobby Scott and Richard Neal have labeled this a “constitutional emergency,” emphasizing the need for accountability and protection of personal data.

The OneGov initiative is set to expand into other IT fields such as hardware, platforms, infrastructure, and cybersecurity services, indicating a comprehensive approach to federal technology procurement. This aligns with President Trump’s April 2025 Executive Order on ensuring commercial, cost-effective solutions in federal contracts, emphasizing the government’s focus on efficiency and cost reduction.

The significant discounts offered by Salesforce and other tech giants could set a new standard for government technology procurement. This move might pressure other software providers to offer competitive pricing, leading to broader cost savings across the federal sector. Additionally, the OneGov initiative’s focus on larger, high-impact deals could streamline the government’s operations, potentially setting a precedent for other sectors to follow.

**Key Questions and Takeaways:**

– **What is the OneGov initiative, and what are its goals?**
The OneGov initiative is a federal government project aimed at centralizing technology procurement to reduce costs and save taxpayer money. Its goals include streamlining the buying process and negotiating larger, high-impact deals that benefit all federal agencies.

– **How significant is the discount Salesforce is offering on Slack to federal agencies?**
Salesforce is offering a 90% discount on Slack, including the Enterprise Grid version designed for large organizations, and nearly 70% off on Slack AI for Enterprise per user. This is a substantial reduction aimed at making the software more accessible to government entities.

– **Who is leading the Department of Government Efficiency (DOGE), and what is its primary aim?**
A seasoned government official with a background in technology management heads the Department of Government Efficiency (DOGE). Its primary aim is to cut federal spending and streamline the government’s use of technology, including addressing overpayments for software licenses.

– **What other tech companies are offering discounts to federal agencies?**
In addition to Salesforce, Google is offering a 71% discount on its Workspace productivity suite, while Adobe and ServiceNow are also extending similar offers to federal agencies.

– **What measures are being taken to ensure cost savings in federal software procurement?**
Measures include centralizing technology buying through the OneGov initiative, reducing the number of intermediaries, and reevaluating software stacks to drop unnecessary or overpriced suppliers. The GSA and DOGE are conducting audits and working to eliminate waste and overpayment.